Business
Museveni Declares End to Sugar Shortages as New Kaliro Sugar Factory Opens
President Yoweri Kaguta Museveni has declared that Uganda’s long era of sugar scarcity is officially over, hailing the opening of the new Kaliro Sugar Factory as a milestone in the country’s industrial and economic journey.
Speaking through the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa, at the factory’s inauguration on Friday, Museveni said Uganda has come a long way since 1986, when sugar and other basic commodities were rationed in Kampala due to limited supply.
“We are saying farewell to those practices forever,” the President affirmed. “Our policy of private sector-led growth, which some once criticised, has proven its worth. Today, Uganda is home to more than five thriving sugar factories, including Kakira, Lugazi, and Mayuge. This is evidence that industrialisation works.”
The Kaliro Sugar Factory, constructed by the Modern Group under the leadership of entrepreneur Ashish Monpara, will initially crush 2,500 tons of sugarcane daily, producing an estimated 78,000 tons of raw sugar annually. The project is expected to create 1,500 direct jobs in its first phase and double that number within two years as the crushing capacity expands to 8,000 tons.
Museveni projected steady economic growth of at least 7% in the medium term, citing ongoing industrialisation efforts like Kaliro Sugar as key drivers of national transformation.
Minister of State for Investment and Privatisation, Hon. Evelyn Anite, praised the venture for aligning with Uganda’s Vision 2040 and National Development Plan III.
“Uganda’s future lies in agro-industrialisation,” Anite said. “Investments like Kaliro Sugar Factory directly empower farmers, create thousands of jobs, and stimulate regional economies. They embody the government’s long-term vision of turning agriculture into industry-driven prosperity.”
Her colleague, Hon. David Bahati, Minister of State for Trade, Industry and Cooperatives (Industry), announced that a long-awaited Sugar Council will be inaugurated within two weeks. He explained that President Museveni had already assented to the bill establishing the council, which will give farmers a stronger voice in determining sugar prices.
Ashish Monpara, Chairman of the Modern Group, described the factory as “not just a factory — but a promise.”
“This facility is about creating opportunities, raising livelihoods, and powering Uganda’s economy forward,” Monpara said. “We are committed to growth that benefits everyone, from farmers to factory workers, and the wider community.”
Local farmers echoed the optimism. Mr. Mumolu Nathan, Chairman of the Outgrowers’ Association, highlighted the factory’s immediate benefits for rural households.
“For the farmers of Kaliro and beyond, this factory is a dream turned into reality. It guarantees us fair markets, consistent incomes, and the dignity of seeing our sugarcane transformed into national wealth,” Nathan said.
Beyond industrial output, Kaliro Sugar has pledged to invest in corporate social responsibility initiatives. Plans include extending access to clean water and electricity for surrounding communities, constructing a community school, supporting local infrastructure such as roads, and adopting eco-friendly waste management systems alongside reforestation efforts.
The factory’s inauguration marks a significant chapter in Uganda’s industrial drive. From once rationing sugar in urban centres to now producing a surplus through multiple factories, Museveni framed the achievement as proof of Uganda’s transformation under a private sector-led economic model.
“With initiatives like this, our farmers, our youth, and our industries are the winners,” the President noted. “Uganda’s future of food and industrial security is bright.”
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